IPO

Shutterstock files for IPO of up to $115 million

Reuters News
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Posted: May 14, 2012 3:18 PM

By Vidya L Nathan

(Reuters) - Online stock photography provider Shutterstock plans an initial public offering of common stock to raise up to $115 million.

Sources told Reuters earlier this month that Shutterstock, which competes with stock photo leader Getty Images, is close to filing for an IPO.

It owns a library of photographs and illustrations that customers can license and download through subscription deals.

Shutterstock is backed by entities affiliated with Insight Venture Partners and Pixel Holdings Inc. Shutterstock Chief Executive Jonathan Oringer is the sole shareholder of Pixel Holdings Inc, according to a regulatory filing with U.S. regulators on Monday.

Oringer — who hails from Westchester, New York — founded the company in 2003, uploading 30,000 stock photos to the site. The site currently has more than 19 million images.

It competes with other online marketplaces for imagery like iStockphoto, Fotolia and Dreamstime and traditional stock content providers such as Corbis Corp.

Getty Images was taken private by Hellman & Friedman for $2.4 billion in 2008.

For the year ended 2011, Shutterstock earned 21.8 million on a revenue of $120.2 million. More than 550,000 active, paying users contributed to revenue in 2011, representing an increase of 71 percent compared to the prior year.

The New York-based company told the U.S. Securities and Exchange Commission in a preliminary prospectus that Morgan Stanley, Deutsche Bank Securities and Jefferies were underwriting the IPO.

The filing did not reveal how many shares the company planned to sell or their expected price.

The company intends to list its common stock on the New York Stock Exchange under the symbol "SSTK".

The amount of money a company says it plans to raise in its first IPO filings is used to calculate registration fees. The final size of the IPO could be different.

(Reporting by Tanya Agrawal and Vidya P L Nathan in Bangalore; Editing by Joyjeet Das)